Allwyn has taken another step forward in its transformation into its ‘lottery-led entertainment company’ via an acquisition of fantasy sports platform PrizePicks.
The deal sees the firm pay US$1.6bn (£1.19bn) for a 62.3% stake in PrizePicks, with further cash injections possible if PrizePicks achieves certain targets over the next three years.
The deal values PrizePiciks at $2.5bn, indicative of its leading position in US fantasy sports, while the prospect of further cash considerations over the coming three years could further push this valuation to $4.5bn.
THis is a milestone for Allwyn in several ways. Firstly, the firm is expanding its presence in the US in a B2C field, one which is heavily connected to the country’s sports betting space – the market leaders in the latter, FanDuel and DraftKings, started life as daily fantasy sports (DFS) platforms before transition into betting following the repeal of PASPA in 2018.
Allwyn’s focus in the US has so far been on B2B products and services, with the operating model of American state lotteries making Allwyn’s European model of running government-backed lottery contracts, like in the UK, difficult to adapt to the US.
So far, the company has established itself as the operator of the Illinois Lottery, alongside providing various lottery solutions services, such as eInstnat products via Instant Win Gaming (IWG), a Swiss firm it acquired a majority stake in back in February 2024.
Acquiring PrizePicks is a sign of Alllwyn diversifying its product portfolio beyond lotteries, both in the US – where it has appointed experienced leadership in former Betfred USA CEO Kresimir Spajic – and elsewhere.
“This is a significant European investment, and Allwyn’s biggest in the United States to date,” said Robert Chvatal, Allwyn CEO.
“PrizePicks is an entrepreneurial company that is empowering a new generation of fans who want to engage with their favourite sports and athletes, not just spectators.
“PrizePicks has created an intuitive platform that simplifies the process of making skilled predictions. I look forward to partnering with Mike and the PrizePicks team to support the growth of the business.”
PrizePicks joins Allwyn’s growing network
Allwyn is, for the most part, a lottery company. However, it has been embarking on a corporate transformation in recent years which has seen a growing appetite for sports and gaming-related products, although with lottery still firmly the lead product.
This process has been running for some time, with the company being a long-standing stakeholder in Greek multinational betting firm Kaizen Gaming and owner of OPAP, operator of the country’s national lottery as well as a sports betting firm. It is also looking to acquire a majority stake in Novibet, another Greek betting firm later this year.
On top of this the company is an active sponsor of Formula One and McLaren, one of the series’ biggest teams, with this marketing serving as a means to promote its lottery-led entertainment vision.
The deal adds PrizePicks to this network, while also recognising the firm as one of the clear leaders in US daily fantasy sports. The company is one of the two biggest in this field, alongside competitor Underdog, with other prominent firms including the above-mentioned FanDuel and DraftKings.
Mike Ybarra, CEO of PrizePicks, said: “Today marks the start of an exciting new chapter for PrizePicks and our growing community of players. There has never been a more electrifying time to shape the future of fan-first entertainment.
“By joining forces with Allwyn, a like-minded and disruptive company that shares our passion for bold product innovation, we will accelerate our mission to make our games more interactive, engaging and rewarding for fans everywhere.”